How does opportunity cost affect an investor's required rate of return?
What will be an ideal response?
An investor's required rate of return can be defined as the minimum rate of return necessary to attract an investor to
purchase or hold a security. This definition considers the investor's opportunity cost of funds of making an investment
in the next-best investment. This forgone return is an opportunity cost of undertaking the investment and,
consequently, is the investor's required rate of return. In other words, we invest with the intention of achieving a rate
of return sufficient to warrant making the investment. The investment will be made only if the purchase price is low
enough relative to expected future cash flows to provide a rate of return greater than or equal to our required rate of
return.
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Special journals are used to divide accounting tasks, minimize errors, and to keep up-to-date records of customers and suppliers
Indicate whether the statement is true or false
The document that a company would issue to a customer for merchandise returned is called a(n)
a. sales allowance; b. credit memorandum; c. debit memorandum; d. allowance memorandum; e. credit allowance
Using a(n) ________ strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product
A) pull B) blitz C) push D) buzz E) pulse
Costs that flow directly to the current income statement and are not reported as assets are ________ costs.
What will be an ideal response?